NEC & FIDIC Contracts now available for Critical Infrastructure Projects in Ireland

In a Circular published by Minister Jack Chambers on 12 August 2026,[1] the Irish Government announced that the New Engineering Contract (NEC) and the Fédération Internationale Des Ingénieurs-Conseils (FIDIC) contract may be used on critical infrastructure projects in the state.

The Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (DPER) Circular announced that Contracting Authorities will now have the option to select a standard form construction contract or consultancy contract ‘that is in use internationally’ for projects designated as critical infrastructure under the Critical Infrastructure Act 2026. The Circular refers to the NEC and FIDIC forms as examples of standard forms used internationally, but it does not limit Contracting Authorities to selecting those forms only.

Previously, Contracting Authorities were obliged to use the suite of contracts available under the Capital Works Management Framework (i.e. PW-CF1 – PW-CF5) and where a public body wished to use another form of contract, a derogation had to be sought from the Government Construction Contracts Committee (GCCC) under Department of Finance Circular 05/2010.[2]

As a result of the change, where a project or programme has been designated as critical infrastructure, Contracting Authorities no longer have to seek a derogation to use an alternative form of contract. Contracting Authorities may instead select a ‘standard form of construction or consultancy contract that is in use internationally which may include the suite of contract forms published by the Institute of Civil Engineers – the New Engineering Contract (NEC) or those forms published by the Fédération Internationale Des Ingénieurs-Conseils (FIDIC).’[3]

The decision to facilitate the use of internationally recognised standard form contracts indicates a policy intention to attract leading international consultants and contractors to participate in the delivery of critical infrastructure projects in Ireland. Familiar contract forms will provide greater certainty regarding risk allocation, contract administration and dispute resolution, making Irish projects more attractive to international firms.

The changes support the Government’s efforts in reforming procurement processes under Action 25 of the Accelerating Infrastructure Plan and follow on from the recently announced National Public Procurement Strategy 2026-2030.

It should be noted, however, that the update is qualified by two conditions:

1. Where any amendments or supplementary conditions are required to the alternative contract’s standard form, they must be amended via the standard optional clauses available under that contract, and bespoke conditions may only be included where ‘absolutely essential’ and necessary for the particular project.
2. The Contracting Authority’s Accounting Officer must be satisfied that necessary resources and supports are in place for the alternative contracting approach.

The first condition recognises and seeks to guard against a longstanding industry problem: standard form contracts being amended with far too many onerous clauses that fundamentally shift the risk profile of contracts away from what the standard form intended, making them unattractive to contractors. It will be interesting to see whether the Government’s advisors operate in line with the intended approach and restrain themselves from seeking to impose overly onerous conditions in contracts.

The second condition seems to be an acknowledgement that utilising standard form contracts like NEC, for example, requires a much more proactive contract administration approach than Contracting Authorities might ordinarily employ.

The proof of this will be in the pudding, and the industry will have to see (1) the amendments that are regularly included in the individual form of contract and (2) how Contracting Authorities tool themselves up for administering/managing these types of contracts. There is a significant education piece that many Contracting Authorities will need to engage with at the outset to ensure implementation of these contracts are successful. One thing is for sure; it will not be successful if a ‘business as usual’ approach is adopted.

The Government’s intention is clear: to attract the best domestic and international consultants and contractors to deliver the state’s infrastructure projects. This is a noble intention, but Contracting Authorities will need to ensure that the contracts they choose, amend and administer, achieve that intention.

Increased flexibility in contracting options for critical infrastructure projects, if implemented properly, should benefit all stakeholders in the construction sector and encourage greater participation of domestic and international contractors and consultants in the Irish construction market, ultimately leading to the highest standard of project being delivered.

The team at Beale & Co have been providing advice to the construction sector in Ireland on public and private projects for over 20 years under many different forms of contract including the standard government forms, NEC3, NEC4, FIDIC, etc., all of which bring different risks or challenges for consultants and contractors.  We also regularly advise large international consultants and contractors on these same suites of contracts on infrastructure projects across other markets.

We advise on all stages of construction projects, from procurement through to completion, on contract drafting, contract administration, dispute avoidance and in formal dispute processes. The team in our Dublin office would be delighted to assist you with any query you may have.

If you would like to discuss anything addressed in this article in the meantime, please contact Jeremy Curran, Construction Engineering and Infrastructure Partner, or Killian Dorney, Construction Engineering and Infrastructure Partner and head of our Dublin office.

[1] Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (DPER), Circular 25/2026, 31 July 2026

[2] Department of Finance, Circular S9/05/10, 3 June 2010

[3] Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (DPER), Circular 25/2026, 31 July 2026 at paragraph 23